The ESMA changes are:
Maximum leverage limits on new positions:
- 30:1 for major currency pairs
- 20:1 for non-major currency pairs, gold and major indices
- 10:1 for commodities other than gold and non-major equity indices
- 5:1 for individual equities and other reference values
- 2:1 for cryptocurrencies
- 50% margin close out rule on an account level basis
- Negative balance protection on an account level basis
- Restriction on incentives
- A standardised risk warning including the percentage of losses on a firm's retail investor accounts.
The changes will be LIVE on all Retail accounts as of market open on Sunday, 29 July 2018.
Will the ESMA changes apply to me?
The ESMA changes will apply to all retail traders who hold trading accounts with brokers authorised and regulated by the Financial Conduct Authority, such as FXCM Limited.
Am I a professional trader?
Professional traders (or Professional clients) meet two of the three following criteria: have carried out transactions, in significant size, on the relevant market at an average frequency of 10 per quarter over the previous four quarters; have a financial portfolio exceeding EUR 500,000; and have worked in the financial sector for at least one year in a professional position, which requires knowledge of the products to be traded.
How can I keep my current margin?
Professional clients will not follow the ESMA leverage changes. Not all clients are eligible for professional client status, and the request will be subject to review.
What are the exact new margin requirements?